Non-resident contractors tax (NRCT)

The 92-day rule for employees

Any amount derived by a non-resident employee for services performed in New Zealand is exempt income under section CW 19(1) of the Income Tax Act 2007 if all the following criteria are met:

• the employee is a non-resident for New Zealand tax purposes
• the employee's visit did not exceed a period of 92 days
• the employee has not been present in New Zealand for a period or periods exceeding an aggregate of 92 days during that income year
• the employee's income earned in New Zealand is subject to tax in the employee's country of residence
• the employer is not resident in New Zealand
• the employee is not a public entertainer as defined in CW 19(2).

Note: If section CW 19(1) of the Income Tax Act 2007 does not apply to treat the employees gross income as exempt income, relief may still be available under a double tax agreement.

Other pages in: Non-resident contractors tax (NRCT)

• Types and definitions of contracts
• Double tax agreements - the 183-day rule
• Accounting for tax on schedular payments
• Exemption and special tax rate certificates
• General information for non-resident contractors
• Background and legislation
• Non-resident contractors' tax - examples
• Non-resident contractor's tax obligations as an employer
• Applications and enquiries

Date published: 28 Jul 2008

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